The government predicts inflation at 5.1% in 2023 and lower unemployment in Portugal

Finance Minister Fernando Medina will present the Stability Program on Monday.

At the presentation, Medina said that higher-than-expected growth is expected.

“The economy will grow more than expected,” he says.

Medina expected the inflation rate to slow significantly. “In the coming months [observaremos] a significant reduction in inflation,” he suggests.

The finance minister attributes the decline in inflation to the “considerable weight” of energy and manufactured goods markets.

However, Medina points out that “lower inflation” does not mean “falling prices”, but rather “slower price rises”.

As for interest rates, the minister predicts that the Euribor will reach a “peak” in the second half of 2023.

Fernando Medina also foresees employment growth in Portugal. “Unemployment will tend to decrease,” he adds.

Medina reinforces the three main missions of the Stability Program. Family income protection. Continuation of the trajectory of public debt reduction. Accelerating investment modernization,” he says.

The Treasury Secretary lays out the goal of cutting the IRS to protect family income.

“Contrary to what has been mentioned, we have a growing trajectory in terms of public investment,” explains Medina.

The politician also presented a forecast for the development of public debt, which, according to him, should be steadily reduced to “less than 100%” of GDP in 2025.

Based on this forecast of a reduction in public debt, Medina argues that if this reduction does not occur, the state will have to pay six billion euros to external creditors between 2023 and 2027.